(Answered) Expecte value of a share of stock

Economics

Problem: Suppose you are considering investing in a pharmaceuticl company that is developing a pharmaceutical company that is developing a new treatment for an incurable disease. If it is successful, the company's stock price will increase from $30/share to $40/share. If the new treatment fails, the stock price price will remain at $30/share. The probability of success is .25; the probalbility of failure is .75. What is the expecte value of a share of stock? Explain your answer and provide examples.

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